If this condo sells at 20% off current prices, think how cheap it will be in 3 years at 20% of 2009 prices. Condos will be hit hardest, and condo conversions will be almost impossible to sell in 5 years. Why not rent, and buy a little house? Condos are not the best for kids -no yard, hauling a stroller and groceries up the stairs with a baby to carry – a real pain in the rear. The best situation with kids is a remote garage door opener, and you pull in and can unload everything conveniently. Believe me, I have 3 kids, I know how much carrying of stuff is involved.
What kind of job do you have now? Is it secure enough to handle the housing downturn?
If you can handle a further 20% – 30% equity drop, the financing on a fixed rate mortgage, and have job security, then jump in.
But be prepared that if you choose to sell whenever there is a glut of inventory, you also will be forced to sell at “20% off the price”, just like the seller today, because condo conversions carry a stigma of apartment grade construction for a condo price. Besides, there are thousands of them…
